CENTRAL ADMINISTRATIVE OFFICE OF THE ROMAN … Statement June 13-12 final.pdfTravis Jeffries, P.A. Boise, Idaho 590 W. WASHINGTON BOISE, ID 83702-5953 PHONE (208) 345-5383 FAX (208)

FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

ROMAN CATHOLIC DIOCESE OF BOISECENTRAL ADMINISTRATIVE OFFICE OF THE

Page

Independent Auditor's Report 3

Statements of Financial Position 4

Statements of Activities 5

Statements of Cash Flows 7

Notes to Financial Statements 9

Independent Auditor's Report on Supplementary Information 29

Combining Statements of Financial Position - UnrestrictedNet Assets 30

Combining Statements of Activities - Unrestricted Net Assets 32

Combining Statements of Financial Position - Temporarily Restricted Net Assets 34

Combining Statements of Activities - Temporarily RestrictedNet Assets 36

Combining Statements of Financial Position - Permanently Restricted Net Assets 38

Combining Statements of Activities - Permanently RestrictedNet Assets 39

TABLE OF CONTENTS

Central Administrative Office of the Roman Catholic Diocese of BoiseBoise, Idaho

Opinion

Travis Jeffries, P.A.Boise, Idaho

590 W. WASHINGTON BOISE, ID 83702-5953 PHONE (208) 345-5383 FAX (208) 345-5505 WWW.TRAVIS-JEFFRIES.COM

May 23, 2014

Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying financial statements of the Central Administrative Office of the RomanCatholic Diocese of Boise (a nonprofit organization), which comprise the statements of financial position as ofJune 30, 2013 and the related statements of activities and cash flows for the year then ended, and the relatednotes to the financial statements. The prior year summarized comparative information has been derived from theOrganization's 2012 financial statements and, in our report dated February 7, 2013, we expressed an unqualifiedopinion on those financial statements.

Management's Responsibility for the Financial Statements

Auditor's Responsibility

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express nosuch opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of the Central Administrative Office of the Roman Catholic Diocese of Boise as of June 30, 2013, and thechanges in its net assets and its cash flows for the year then ended in accordance with accounting principlesgenerally accepted in the United States of America.

CENTRAL ADMINISTRATIVE OFFICE OF THEROMAN CATHOLIC DIOCESE OF BOISE

2012

Temporarily Permanently SummarizedUnrestricted Restricted Restricted Total Information

ASSETSCash 7,153$ 16,478$ -$ 23,631$ 744,103$ Certificates of deposit - - - - 145,711 Accounts and pledges receivable 4,632,261 50,829 - 4,683,090 2,442,376 Deposits and prepaid expenses 166,812 700 - 167,512 137,491 Interfund receivable (payable) (2,167,581) 2,167,581 - - - Marketable securities 13,294,456 1,099,064 833,914 15,227,434 13,510,211 Beneficial interest in perpetual trust - 33,285 573,528 606,813 571,000 Loans to parishes and schools 9,063,798 - - 9,063,798 11,421,013Loans and notes receivable 611,338 - - 611,338 600,491Property, plant and equipment 16,918,070 88,655 235,000 17,241,725 17,319,257 Accumulated depreciation (5,180,167) (3,819) - (5,183,986) (4,736,882)

Total Assets 37,346,140$ 3,452,773$ 1,642,442$ 42,441,355$ 42,154,771$

LIABILITIESAccounts payable 125,937$ 11,761$ -$ 137,698$ 140,732$ Accrued liabilities 1,149,147 718,987 - 1,868,134 1,958,665Line of credit 3,000,000 - - 3,000,000 1,000,000Parish cash management 3,898,928 - - 3,898,928 3,335,001 Parish savings deposits 22,484,903 - - 22,484,903 25,113,931 Lay pension trust 279,588 - - 279,588 496,291 Liability for pension benefits - lay 597,960 - - 597,960 678,991Liability for pension benefits - priest 739,253 - - 739,253 789,876Notes payable 3,173,831 - - 3,173,831 3,318,303Deferred revenue 115 - - 115 2,625

Total Liabilities 35,449,662 730,748 - 36,180,410 36,834,415

NET ASSETSUnrestricted (1,679,259) - - (1,679,259) (2,139,326) Board Designated 3,575,737 - - 3,575,737 3,217,242 Temporarily restricted - 2,722,025 - 2,722,025 2,834,998 Permanently restricted - - 1,642,442 1,642,442 1,407,442

Total Net Assets 1,896,478 2,722,025 1,642,442 6,260,945 5,320,356

Total Liabilities and Net Assets 37,346,140$ 3,452,773$ 1,642,442$ 42,441,355$ 42,154,771$

STATEMENTS OF FINANCIAL POSITION

LIABILITIES AND NET ASSETS

2013

June 30, 2013 and June 30, 2012 Summarized Information

ASSETS

See notes to financial statements.4


2012


REVENUE AND SUPPORTContributions 320,212$ 2,881,686$ 235,000$ 3,436,898$ 3,728,187$ Program services 1,167,881 113,500 - 1,281,381 1,352,442Assessment revenue 661,088 - - 661,088 637,180Insurance program 4,572,673 - - 4,572,673 4,421,789Grant revenue 311,108 161,397 - 472,505 683,469Deposit and loan interest 294,653 - - 294,653 250,153Rental income 619,109 63,715 - 682,824 707,888Gain (loss) on the sale of property 532,643 - - 532,643 3,713Realized gain on investments 607,342 32,667 - 640,009 39,475 Unrealized gain (loss) on investments 751,433 87,836 - 839,269 (495,280) Interest and dividends 275,605 31,526 - 307,131 384,699 ICF campaign reimbursements 500,000 500,000 - Miscellaneous 13,707 - - 13,707 7,900Net assets released from restrictions

satisfied by payments 3,485,300 (3,485,300) - - -

Total Revenue and Support 14,112,754 (112,973) 235,000 14,234,781 11,721,615

EXPENSESProgram services

Pastoral 2,210,364 - - 2,210,364 2,571,120Education 1,417,067 - - 1,417,067 1,199,832Social services 210,056 - - 210,056 271,400Deposit and loan interest 1,364,718 - - 1,364,718 543,107Newspaper 274,602 - - 274,602 276,666Retreat center 261,535 - - 261,535 242,198Insurance program 3,797,983 - - 3,797,983 4,351,830St. John Vianney Retirement Center 63,090 - - 63,090 55,282

Total Program Services 9,599,415$ -$ -$ 9,599,415$ 9,511,435$

2013

For the Year Ended June 30, 2013 and Summarized Information for the Year Ended June 30, 2012

STATEMENTS OF ACTIVITIES



2012


Supporting ServicesGeneral administrative 2,289,312$ -$ -$ 2,289,312$ 2,326,307$ Development 1,045,803 - - 1,045,803 233,328 FASB ASC 715 Expense (131,654) - - (131,654) 298,025 Depreciation 491,316 - - 491,316 498,269

Total Supporting Services 3,694,777 - - 3,694,777 3,355,929

Total Expenses 13,294,192 - - 13,294,192 12,867,364

Increase (Decrease) in NetAssets 818,562 (112,973) 235,000 940,589 (1,145,749)

NET ASSETS, Beginning of Year 1,077,916 2,834,998 1,407,442 5,320,356 6,466,105

NET ASSETS, End of Year 1,896,478$ 2,722,025$ 1,642,442$ 6,260,945$ 5,320,356$

2013

STATEMENTS OF ACTIVITIES (Continued)




2013 2012CASH FLOWS FROM OPERATING ACTIVITIES

Increase (Decrease) in net assets 940,589$ (1,145,749)$ Adjustments to reconcile net loss to net cash

used in operating activities:Depreciation 491,316 498,269 Unrealized (gain) loss on investments (855,976) 534,953 Realized gain on investments (640,365) (103,146) Realized (gain) loss on asset disposal (594,608) (3,713) Contributions made (received) of marketable securities (307,734) (44,731) Changes in operating assets and liabilities:

Accounts receivable (2,240,714) (73,240) Prepaid expenses (30,021) (76,223) Accounts payable (3,034) (16,376) Accrued liabilities (81,006) (87,165) Parish cash management 563,927 362,020 Parish savings deposits (2,629,028) 91,171 Lay Pension Trust (216,703) (1,092,555) Liability for pension benefits - lay (81,031) 139,980 Liability for pension benefits - priest (50,623) 158,045 Deferred revenue (2,510) (16,737)

Net Cash Used in Operating Activities (5,737,521) (875,197)

CASH FLOWS FROM INVESTING ACTIVITIESSale of certificates of deposit 145,711 726,706 Loans and notes receivable 2,346,368 1,196,245 Purchase of investments (636,433) (633,495) Proceeds from sale of investments 677,947 1,591,427 Purchase of fixed assets (395,105) (146,823) Proceeds from sale of fixed assets 1,023,033 76,397

Net Cash Provided by Investing Activities 3,161,521 2,810,457

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from (payments to) line of credit 2,000,000 (2,450,000) Payment of long-term debt (144,472) (134,611)

Net Cash Provided by (Used in) Financing Activities 1,855,528 (2,584,611)

Net Decrease in Cash and Cash Equivalents (720,472)$ (649,351)$

STATEMENTS OF CASH FLOWS

For the Years Ended June 30, 2013 and 2012



2013 2012

CASH AND CASH EQUIVALENTS, Beginning of Year 744,103$ 1,393,454$

CASH AND CASH EQUIVALENTS, End of Year 23,631$ 744,103$

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for interest expense 193,072$ 270,456$

STATEMENTS OF CASH FLOWS (Continued)

For the Years Ended June 30, 2013 and 2012



NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

Nature of Organization

Basis of Presentation

Financial Statement Presentation

Contributions

Promises to Give

Allowance for Doubtful Accounts

Cash and Cash Equivalents

Advertising and Promotion

The Diocese considers its short-term, highly liquid investments purchased with a maturity of threemonths or less to be cash equivalents.

Unconditional promises to give are recognized as revenues or gains in the period received and asassets, decreases of liabilities, or expenses depending on the form of the benefits received.Conditional promises to give are recognized only when conditions on which they depend aresubstantially met and promises become unconditional.

The Diocese uses advertising to promote its programs among the audiences it serves. The costsof advertising are expensed as incurred. During the years ended June 30, 2013 and 2012,advertising costs totaled $5,218 and $7,403, respectively.

NOTES TO FINANCIAL STATEMENTS

Financial statement presentation follows the recommendations of the Financial AccountingStandards Board in its Accounting Standards Codification (FASB ASC) 958. In accordance withthe standard, the Diocese is required to report information regarding its financial position andactivities according to three classes of net assets: unrestricted, temporarily restricted andpermanently restricted.

The Diocese follows the recommendations of the FASB ASC 958 for accounting for contributionsreceived and contributions made. In accordance with the standard, contributions received arerecorded as unrestricted, temporarily restricted, or permanently restricted support depending onthe existence and/or nature of any donor restrictions.

The financial statements of the Diocese have been prepared on the accrual basis of accounting.

Central Administrative Office of the Roman Catholic Diocese of Boise (the Diocese) wasestablished in 1895 for the purpose of overseeing certain Catholic organizations within the Stateof Idaho. Under the direction of the Roman Catholic Bishop of Idaho the Diocese works toproclaim the presence of God in Word and Sacrament while nurturing and supporting vital faithcommunities, affirming the values of society and recognizing and responding to those in need.

June 30, 2013 and 2012

The Diocese provides an allowance for doubtful accounts based on prior experience andmanagement's assessment of collectibility of existing specific accounts.

9

CENTRAL ADMINISTRATIVE OFFICE OF THE ROMAN CATHOLIC DIOCESE OF BOISE

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued)

Investments

Income Tax Status

Investment Income and Gains

Fixed Assets

Valuation of Gifts

Volunteer Services

Use of Estimates

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2013 and 2012

Management uses estimates and assumptions in preparing financial statements. Thoseestimates and assumptions affect the reported amounts of assets and liabilities, the disclosure ofcontingent assets and liabilities, and the reported revenues and expenses.

Investment income and gains, when attributed to unrestricted net assets, are consideredunrestricted revenue in the reporting period in which the income and gains are recognized.

Fixed assets are stated at cost, except for donated equipment, which is stated at fair market valueat date of receipt. Depreciation is computed using the straight-line method over estimated usefullives of the assets, which range from 5 to 25 years. Expenditures for major renewals andbetterments that extend the useful lives of property and equipment are capitalized. The Diocesecapitalizes assets valued $1,000 or more. Expenditures for maintenance and repairs are chargedto expense as incurred. Depreciation expenses for June 30, 2013 and 2012 were $491,316 and$498,269, respectively.

Noncash assets contributed to the Diocese are recorded at appraised value when it is provided byan independent third party. If no independent third party appraisal is available, the asset isrecorded at an objective verifiable basis which is, in the judgment of the Diocese’s management, afair value to the Diocese for its purposes.

A number of volunteers have contributed significant amounts of their time to the programs andactivities of the Diocese. The value of this contributed time is not reflected in these statementsbecause it is not susceptible to objective measurement or valuation.

The Diocese qualifies as a tax-exempt organization under Section 501(c)(3) of the InternalRevenue Code except for federal taxes on unrelated business income tax on unrelated debtfinanced income, there is no other provision for federal income taxes.

In accordance with FASB ASC 740, the Diocese has evaluated its operations as of June 30, 2013as compared to its original application for tax-exempt not-for-profit status. Upon the evaluation,the Diocese does not believe it has any business activities in place that would cause its tax-exempt not-for-profit status to not be sustained upon audit.

The Diocese follows FASB ASC 958, in accounting for investments. According to the standard,investments in marketable securities with readily determinable fair values and all investments indebt securities are reported at their fair values in the statement of financial position. Unrealizedgains and losses are included in the change in net assets.

10


NOTE B - INVESTMENTS

2013 2012

Money market funds 690,483$ 798,578$ Mutual funds - equity 2,051,532 680,563 Mutual funds - fixed income 2,668,451 2,904,077 Mutual funds - balanced 527,384 1,037,319 Corporate obligations 573,525 981,475 Government and agency obligations 253,814 287,411 Municipal bonds 32,712 25,474 Corporate equities 8,429,533 6,795,314

15,227,434$ 13,510,211$

Net investment income at June 30: 2013 2012

Net realized gain 640,009$ 39,475$ Net unrealized gain (loss) 839,269 (495,280)Interest and dividend income 307,131 384,699

1,786,409$ (71,106)$

NOTE C - FAIR VALUE MEASUREMENTS

●

●

●


June 30, 2013 and 2012

Marketable securities are pooled in two groups and are allocated to various funds. At June 30, theyconsisted of the following :

The Diocese follows FASB ASC 820, which establishes a framework for measuring fair value. Thatframework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used tomeasure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in activemarkets for identical assets or liabilities (level 1 measurements) and the lowest priority tounobservable inputs (level 3 measurements). The three levels of the fair value hierarchy aredescribed below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments)

Level 3 - significant unobservable inputs (including the Organization's own assumptions indetermining the fair value of investments)

The asset's or liability's fair value measurement level within the fair value hierarchy is based on thelowest level of any input that is significant to the fair value measurement. Valuation techniques usedneed to maximize the use of observable inputs and minimize the use of unobservable inputs.

11


NOTE C - FAIR VALUE MEASUREMENTS (Continued)

Assets at fair value as of June 30, 2013:

Level 1 Level 2 Level 3 Total

Money market funds $ 690,483 $ - -$ $ 690,483 Mutual funds - equity 731,016 1,320,517 - 2,051,533 Mutual funds - fixed income - 2,668,451 - 2,668,451 Mutual funds - balanced - 527,384 - 527,384 Corporate obligations 317,082 256,442 - 573,524 Government and agency obligations 253,814 - - 253,814 Municipal bonds - 32,712 - 32,712 Corporate equities 8,429,533 - - 8,429,533

$ 10,421,928 $ 4,805,506 -$ $ 15,227,434

NOTE D -

NOTE E - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following at June 30: 2013 2012

Buildings 10,107,984$ 10,144,898$ Equipment 2,459,642 2,405,260

12,567,626 12,550,158Less accumulated depreciation 5,183,986 4,736,882

7,383,640 7,813,276Land 4,674,099 4,769,099

12,057,739$ 12,582,375$

NOTE F - IDAHO CATHOLIC FOUNDATION

The Idaho Catholic Foundation holds investments for the Diocese as well as other Diocesanorganizations. In June 2012 the Foundation became a legally separate entity from the Diocese, withits own tax identification number and bank accounts. The Foundation issues separately preparedfinancial statements.


June 30, 2013 and 2012

PLEDGES RECEIVABLE

The Idaho Catholic Appeal (ICA) is an annual campaign normally conducted in the parishes whichraises operating funds for various programs and ministries supported by the Diocese. Theseprograms include pastoral services, care of the priests, outreach, education and formation, CatholicCharities and the Universal Church. The funds are considered temporarily restricted until the end ofthe campaign when they are distributed for purposes of supporting the stated programs. The 2013ICA funds were raised as part of the capital campaign described in Note V, and are being collectedand held by the Idaho Catholic Foundation. The ICA receivable due from the Idaho CatholicFoundation totaled $2,320,862 as of June 30, 2013. Total pledges receivable from the 2012 ICAwere $39,348 and $285,207 as of June 30, 2013 and 2012, respectively. The Diocese receivedpayment for the 2013 ICA funds due from the Idaho Catholic Foundation during the fiscal year endingJune 30, 2014, and has deemed remaining 2012 pledges collectible, therefore no allowance fordoubtful accounts has been computed.

12


NOTE F - IDAHO CATHOLIC FOUNDATION (Continued)

2013 2012

$ 6,839,232 $ 6,243,115 202,271 190,333 - 894 316,000 81,000

2013 2012

$ 859,299 $ (135,292) 341,162 94,854

306,138 311,987 57,718 54,382

NOTE G - BENEFICIAL INTEREST IN PERPETUAL TRUST

$ 571,000 35,813 10,213 (10,213)

$ 606,813


June 30, 2013 and 2012

The Diocese received notice on March 30, 2011 that they were named as a beneficiary in The John L. Muegerl Trust. The trust account assets are held and managed by an independent trustee. In April2011, a trust investment account was opened at a national financial institution, and in May 2012 trustassets were transferred to the account. The beneficial interest in trust assets was recorded at fairmarket value as of May 31, 2011, as a permanently restricted contribution. The Diocese's beneficialinterest consists of fifteen percent of the total trust assets, divided such that five percent of thebeneficial interest is designated to each of the following: the Idaho Catholic Foundation - Held forDiocese, the Diocesan Development Program and the Idaho Priests Special Needs Fund. Accordingto the trust agreement, the Diocese is to receive a fixed percentage of trust assets each year, whichis temporarily restricted income to the three funds mentioned above, and has been recorded as suchin the Statement of Activities for the years ended June 30, 2013 and 2012. The beneficial interest intrust assets has been recorded at fair market value as of June 30, 2013 and 2012 in the Statementsof Financial Position. The net increase in fair market value from May 31, 2011 to June 30, 2013 of$33,285 is included in temporarily restricted net assets.

Activity for the beneficial interest in the perpetual trust for the year ended June 30, 2013 is as follows:

Investments and related financial items held by the Idaho Catholic Foundation for the Diocese arereflected in unrestricted, temporarily restricted and permanently restricted net asset classifications ofthese financial statements.

Income and expenses reported in the Statements of Activities from investments held by the IdahoCatholic Foundation for the Diocese are as follows at June 30:

Investment income (loss)Income:

Expenses:Contributions

Distributions to participantsInvestment and managerial expenses

Land

Assets reported in the Statements of Financial Position held by the Idaho Catholic Foundation for the Diocese are as follows at June 30:

InvestmentsBeneficial interest in perpetual trust

Amounts appropriated for expenditure

Total Beneficial Interest in Perpetual Trust

Interest receivable

Beginning balance, June 30, 2012Unrealized gainIncome distributable to beneficiary

13


NOTE H - ENDOWMENTS

Board and Donor--designated Endowments - after implementation of FASB ASC 958-205

Investment Policy

All endowments within the financial statements of the Diocese follow the Prudent Person Guideline.The PPG suggests an amount to be distributed which is designed to allow for a reasonable stream ofdistributions, while preserving the value of the endowment against inflation and a volatile market. Thecalculation applies an applicable distribution percentage (currently five percent) to the average valueof the endowment account over the preceding period of 12 calendar months.


June 30, 2013 and 2012

All endowments are invested in Diocese Investment Pool. The Pool is professionally managed byten different investment firms with specific disciplines of investment such as large cap growth, largecap value, fixed income, etc. Further these managers have regular oversight by an independentconsultant hired by the Diocese. This consultant independently reports to the finance council of theDiocese on a quarterly basis. Each manager’s performance is specifically checked for adherence toinvestment discipline and judged against established industry accepted benchmarks.

Board-designated endowments that are internally designated by the Board of Directors and are notdonor-restricted are classified and reported as unrestricted net assets. The Idaho CatholicFoundation administers the endowments of the Diocese. These endowments consist ofapproximately eleven individual funds, some of which have donor-restricted spending guidelines andwere established for a variety of purposes ranging from education of seminarians and helping retiredpriests of the Diocese, to providing scholarships for education of youth and maintenance and repairof facilities. Endowments administered by the Idaho Catholic Foundation include both donor-restricted endowment funds and funds designated by the Board of Trustees to function asendowments.

As required by generally accepted accounting principals, net assets associated with endowmentfunds, including funds designated by Board of Trustees to function as endowments, are classifiedand reported based on the existence or absence of donor-imposed restrictions.

The Diocese follows FASB ASC 958-205 in its accounting for endowments. FASB ASC 958-205provides guidance on the net asset classification of donor-restricted endowment funds for a nonprofitorganization that is subject to an enacted version of the Uniform Prudent Management of InstitutionalFunds Act of 2006 (UPMIFA). FASB ASC 958-205 also requires additional disclosures about anorganization's endowment funds (both donor-restricted endowment funds and board-designatedendowment funds) whether or not the organization is subject to UPMIFA.

The State of Idaho enacted UPMIFA effective July 1, 2007, the provisions of which apply toendowment funds existing on or established after that date. The Diocese follows FASB ASC 958-205 for the years ending June 30, 2013 and 2012. It has been determined that the Diocese'spermanently restricted net assets meet the definition of endowment funds under UPMIFA.

14


NOTE H - ENDOWMENTS (Continued)

Temporarily Permanently Total NetUnrestricted Restricted Restricted Endowment

Donor-restricted endowment funds 157,147$ 33,285$ 1,642,442$ 1,832,874$ Board-designated endowment funds 3,575,737 - - 3,575,737

Total funds 3,732,884$ 33,285$ 1,642,442$ 5,408,611$

Change in endowment net assets as of June, 2013 are as follows:


Endowment net assets, beginning of year 3,300,010$ 2,681$ 1,407,442$ 4,710,133$ Contributions 101,490 10,212 235,000 346,702 Investment income 329,522 - - 329,522 Net appreciation (depreciation) 274,995 33,285 - 308,280 Amounts appropriated for expenditure (273,133) (12,893) - (286,026)

Endowment net assets, end of year 3,732,884$ 33,285$ 1,642,442$ 5,408,611$


Donor-restricted endowment funds 82,768$ 2,681$ 1,407,442$ 1,492,891$ Board-designated endowment funds 3,217,242 - - 3,217,242

Total funds 3,300,010$ 2,681$ 1,407,442$ 4,710,133$

Change in endowment net assets as of June, 2012 are as follows:


Endowment net assets, beginning of year 3,643,890$ 6,919$ 1,407,442$ 5,058,251$ Contributions 730 - - 730 Investment income 158,093 13,913 - 172,006 Net appreciation (depreciation) (251,194) - - (251,194) Amounts appropriated for expenditure (251,509) (18,151) - (269,660)

Endowment net assets, end of year 3,300,010$ 2,681$ 1,407,442$ 4,710,133$


June 30, 2013 and 2012

Endowment Net Asset Composition by Type of Fund as of June 30, 2012 is as follows:

Endowment Net Asset Composition by Type of Fund as of June 30, 2013 is as follows:

15


NOTE I - PRIESTS RETIREMENT PLAN

Funded Status

The following table sets forth the plan's funded status at June 30:

Fiscal Year Fiscal Year Ended Ended

June 30, 2013 June 30, 2012

Vested benefit obligation (7,866,000)$ (8,132,000)$

Accumulated benefit obligation (8,053,000) (8,362,000)

Projected benefit obligation (11,371,000) (12,058,000)

Plan assets at fair value 4,466,000 3,927,000

Funded status at end of year (6,905,000) (8,131,000)

Liability for pension benefits (6,905,000)$ (8,131,000)$

Vested benefit obligation ratio 56.78% 48.29%

Amounts recognized in the plan's statements of financial position consist of:

Fiscal Year Fiscal YearEnded Ended

June 30, 2013 June 30, 2012

Noncurrent assets -$ -$ Current liabilities - - Noncurrent liabilities (6,905,000) (8,131,000)

(6,905,000)$ (8,131,000)$

Amounts recognized in the plan's unrestricted net assets consist of:


June 30, 2013 June 30, 2012

Net loss 2,159,000$ 2,130,000$ Net transition asset (21,000) (38,000) Prior service cost 1,857,000 3,516,000

3,995,000$ 5,608,000$


June 30, 2013 and 2012

The Roman Catholic Diocese of Boise sponsors a defined benefit pension plan for all Diocesanpriests who are ordained or incardinated in the Roman Catholic Diocese of Boise and in goodstanding and not on probation. The Central Administrative Office of the Roman Catholic Diocese ofBoise participates in this plan.

The plan provides benefits based on a flat dollar amount multiplied by years and months of service.

Since the Roman Catholic Diocese of Boise is exempt from the funding requirements of ERISA, ithas been its practice to make contributions annually to the plan based on generally acceptedactuarially principles. In general, it is the policy of the Roman Catholic Diocese of Boise to fund anyunfunded past service liability over 20 years.

16


NOTE I - PRIESTS RETIREMENT PLAN (Continued)

Net Periodic Pension Cost


June 30, 2013 June 30, 2012

Service cost-benefits earned during the period 402,000$ 300,000$

Interest cost on projected benefit obligation 464,000 545,000

Return on plan assetsExpected return (287,000) (305,000) Asset (gain) loss (217,000) 464,000

Actual return on plan assets (504,000) 159,000

Net amortization and deferralAmortization of prior service cost 273,000 273,000 Amortization of transition amount (17,000) (17,000) Amortization of loss 122,000 37,000 Deferral of asset gain (loss) 217,000 (464,000)

Total 595,000 (171,000)

Net periodic pension cost 957,000$ 833,000$

Other changes in plan assets and benefit obligations recognized in unrestricted net assets:


June 30, 2013 June 30, 2012

Net loss (gain) (1,235,000)$ 1,759,000$ Prior service cost - - Amortization of loss (122,000) (37,000) Amortization of transition obligation 17,000 17,000 Amortization of prior service cost (273,000) (273,000)

Total recognized in unrestricted net assets (1,613,000) 1,466,000

Net periodic pension cost 957,000 833,000

Total recognized in net periodic pension cost and unrestricted net assets (656,000)$ 2,299,000$


June 30, 2013 and 2012

The following items are the components of the net periodic pension cost for the plan as a whole forthe years ended June 30:

17



Assumptions Used to Determine Net Periodic Pension Cost


June 30, 2013 June 30, 2012

Discount Rate 3.93% 5.35%Expected long-term rate of return on assets 7.50% 7.50%Future benefit increases 3.00% 3.00%

Assumptions Used to Determine Benefit Obligations at Year-End


June 30, 2013 June 30, 2012

Discount rate 4.49% 3.93%Future benefit increases 3.00% 3.00%

Plan Asset Investment Strategy and Allocation

Investment PolicyTarget Asset

Asset Category Allocation 2013 2012

Equities 25-75% 70% 68%Fixed Income 25-75% 27% 28%Cash Equivalents 0-100% 3% 4%


Money market funds 164,013$ -$ -$ 164,013$ Mutual funds - equity 79,016 539,474 - 618,490 Mutual funds - fixed income - 922,385 - 922,385 Mutual funds - balanced - 169,112 - 169,112 Corporate obligations 177,441 - - 177,441 Government and agency obligations 19,131 - - 19,131 Municipal bonds - 9,484 - 9,484 Corporate equities 2,385,944 - - 2,385,944

2,825,545$ 1,640,455$ -$ 4,466,000$

The fair values of plan assets at June 30, 2013, by asset class are as follows:


June 30, 2013 and 2012

Plan Assets at June 30

The asset allocation for the pension plan as of June 30, 2013 and June 30, 2012 and the targetallocation, by asset category, are:

Actual Percentage of

The Roman Catholic Diocese of Boise employs a methodical process to determine the estimates ofexpected long-term rate of return on assets. These estimates are primarily driven by actualhistorical asset-class returns and advise from external actuarial and investment consulting firmswhile incorporating specific asset-class risk factors. For the fiscal years ending June 30, 2013 andJune 30, 2012, the expected long-term rate of return used in determining net periodic pension costwas 7.5%.

18



Cash Flows

Estimated Future Benefit Payments

Fiscal Year Annual PensionEnding June 30 Benefits

2014 510,000$ 2015 577,000 2016 610,000 2017 596,000 2018 672,000

2019-2023 3,449,000$

NOTE J - LAY EMPLOYEES PENSION PLAN

The Roman Catholic Diocese of Boise sponsors a defined benefit pension plan for all full-time layemployees who have completed at least one year of service. The plan is a cash balance plan andprovides benefits based on a pension account balance, which consists of prior service credits,employer credits and interest credits. The Central Administrative Office of the Roman CatholicDiocese of Boise participates in this plan.


June 30, 2013 and 2012

For the years ended June 30, 2013 and 2012, pension contributions of $570,000 and $480,000,respectively, were made. Benefit payments of $515,000 and $512,000 were made from the planduring the years ended June 30, 2013 and June 30, 2012, respectively.

The Diocese expects to contribute $600,000 to the pension plan during the fiscal year ending June30, 2014.

Under FASB ASC 715, the funded status is recognized in the statement of the financial position as a"Liability for pension benefits - priests". Unrecognized prior service costs and unrecognized actuariallosses are recognized in unrestricted net assets. The calculations above and on the prior pagesrepresent the obligation of the entire Roman Catholic Diocese of Boise. The amounts recognized inthe financial statements represent the obligation of the Central Administrative Office of the Diocese,and totaled $739,253 for the year ended June 30, 2013 and $789,876 for the year ended June 30,2012.

The pension plan has a diversified investment program, utilizing a variety of asset classes thatbalances risk with return opportunities. It utilizes highly qualified external investment managers thathave demonstrated skill in a particular asset class. The Roman Catholic Diocese of Boise regularlymonitors each investment manager's performance and the overall fund relative to benchmarks andalso regularly reviews the asset allocation and makes appropriate changes accordingly. Prohibitedinvestments include short sales, commodity contracts, real estate and equity option contracts.Investment decisions include consideration for corporate social responsibility and Roman Catholicsocial teaching.

The following benefit payments, which reflect future service, as appropriate, are expected to be paid:

19


NOTE J - LAY EMPLOYEES PENSION PLAN (Continued)

Funded Status

The following table sets forth the plan's funded status at June 30:


June 30, 2013 June 30, 2012

Vested benefit obligation (10,151,000)$ (10,016,000)$

Accumulated benefit obligation (12,131,000) (12,048,000)

Projected benefit obligation (12,131,000) (12,048,000)

Plan assets at fair value 6,136,000 5,343,000

Funded status at end of year (5,995,000) (6,705,000)

Liability for pension benefits (5,995,000)$ (6,705,000)$

Vested benefit obligation ratio 60.45% 53.34%

Amounts recognized in the plan's statements of financial position consist of:


June 30, 2013 June 30, 2012

Noncurrent assets -$ -$ Current liabilities - - Noncurrent liabilities (5,995,000) (6,705,000)

(5,995,000)$ (6,705,000)$

Amounts recognized in the plan's unrestricted net assets consist of:


June 30, 2013 June 30, 2013

Net loss 3,028,000$ 3,850,000$ Prior service cost - -

3,028,000$ 3,850,000$


June 30, 2013 and 2012

Because the Roman Catholic Diocese of Boise is exempt from the funding requirements of ERISA, ithas been its practice to make contributions annually to the plan that are not less than pre-ERISAminimum funding requirement as applicable to churches, and not in excess of the amount that couldbe deducted for federal income tax purposes, assuming the Roman Catholic Diocese of Boise wasnot exempt from taxation. It is the Roman Catholic Diocese of Boise's policy to fund any unfundedpast service liability over 30 years. The policy of the Roman Catholic Diocese of Boise is to obtain anactuarial valuation of the lay plan every two years.

20



Net Periodic Pension Cost


June 30, 2013 June 30, 2012

Service cost-benefits earned during the period 850,000$ 743,000$

Interest cost on projected benefit obligation 456,000 515,000

Return on plan assetsExpected return (403,000) (327,000) Asset (gain) loss (259,000) 414,000

Actual return on plan assets (662,000) 87,000

Net amortization and deferralAmortization of transition amount - - Amortization of loss 265,000 111,000 Deferral of asset gain (loss) 259,000 (414,000)

Total 524,000 (303,000)

Net periodic pension cost 1,168,000$ 1,042,000$

Other changes in plan assets and benefit obligations recognized in unrestricted net assets:


June 30, 2013 June 30, 2013

Net loss (gain) (557,000)$ 1,848,000$ Prior service cost - - Amortization of loss (265,000) (111,000) Amortization of transition obligation - - Amortization of prior service credit - -

Total recognized in unrestricted net assets (822,000) 1,737,000

Net periodic pension cost 1,168,000 1,042,000

Total recognized in net periodic pension cost and unrestricted net assets 346,000$ 2,779,000$


June 30, 2013 and 2012

The following items are the components of the net periodic pension cost for the plan as a whole forthe years ended June 30:

21



Assumptions Used to Determine Net Periodic Pension Cost


June 30, 2013 June 30, 2012

Discount Rate 3.93% 5.35%Expected long-term rate of return on assets 7.50% 7.50%Salary Scale 4.50% 4.50%

Assumptions Used to Determine Benefit Obligations at Year-End


June 30, 2013 June 30, 2012

Discount rate 4.49% 3.96%Future benefit increases 4.50% 4.50%

Plan Asset Investment Strategy and Allocation

Investment PolicyPolicy Target Benchmark

Asset Category Asset Allocation Asset Allocation 2013 2012

Equities 25-75% 50% 71% 64%Fixed Income 25-75% 40% 26% 32%Cash Equivalents 0-100% 10% 3% 4%


Money market funds 203,854$ -$ -$ 203,854$ Mutual funds - equity 111,685 853,679 - 965,364 Mutual funds - fixed income - 1,481,302 - 1,481,302 Mutual funds - balanced - 252,186 - 252,186 Corporate equities 3,233,294 - - 3,233,294

3,548,833$ 2,587,167$ -$ 6,136,000$

The asset allocation for the pension plan as of June 30, 2013 and June 30, 2012 and the targetallocation, by asset category, are:

The fair values of plan assets at June 30, 2013, by asset class are as follows:


June 30, 2013 and 2012

Plan Assets at June 30Actual Percentage of

The Roman Catholic Diocese of Boise employs a methodical process to determine the estimates ofexpected long-term rate of return on assets. These estimates are primarily driven by actualhistorical asset-class returns and advice from external actuarial and investment consulting firmswhile incorporating specific asset-class risk factors. For the fiscal years ending June 30, 2013 andJune 30, 2012, the expected long-term rate of return used in determining net periodic pension costwas 7.5%.

22



Cash Flows

Estimated Future Benefit Payments

Fiscal Year Annual PensionEnding June 30 Benefits

2014 857,000$ 2015 993,000 2016 857,000 2017 1,306,000 2018 869,000

2019-2023 6,283,000$

The pension plan has a diversified investment program, utilizing a variety of asset classes thatbalances risk with return opportunities. It utilizes highly qualified external investment managers thathave demonstrated skill in a particular asset class. The Roman Catholic Diocese of Boise regularlymonitors each investment manager's performance and the overall fund relative to benchmarks andalso regularly reviews the asset allocation and makes appropriate changes accordingly. Prohibitedinvestments include short sales, commodity contracts and equity option contracts. Investmentdecisions include consideration for corporate social responsibility and Roman Catholic socialteaching.

The following benefit payments, which reflect future service, as appropriate, are expected to be paid:


June 30, 2013 and 2012

The Diocese expects to contribute $1,200,000 to the pension plan during the fiscal year ending June30, 2014.

Diocesan pension contributions for the years ended June 30, 2013 and 2012 were $1,056,000 and$1,845,000, respectively. Benefit payments of $840,000 and $585,000 were made from the planduring the years ended June 30, 2013 and June 30, 2012, respectively.

Under FASB ASC 715, the funded status is recognized in the statement of the financial position as a"Liability for pension benefits - lay". Unrecognized prior service costs and unrecognized actuariallosses are recognized in unrestricted net assets. The calculations above and on the prior pagesrepresent the obligation of the entire Roman Catholic Diocese of Boise. The amounts recognized inthe financial statements represent the obligation of the Central Administrative Office of the Diocese,and totaled $597,960 for the year ended June 30, 2013 and $678,991 for the year ended June 30,2012.

23


NOTE K - DEPOSIT AND LOAN FUND

2013 2012Balances as of June 30:

Deposits in Fund from Parishes and Schools 22,484,903$ 25,113,931$

Loans from Fund to Parishes and Schools 9,063,798$ 11,421,013$

Percentage Loaned Out 40.31% 45.48%

NOTE L - NOTES AND ACCOUNTS RECEIVABLE

NOTE M - LINE OF CREDIT

NOTE N -


June 30, 2013 and 2012

Mortgage note payable, secured by real and personal property, payable in monthly installments of$18,361 including principal and interest at a fixed rate of 5.43% per annum. Note matures in January 2028. This loan was refinanced in February 2013, prior installments were $18,982 with a rate of5.81% per annum.

Note payable, secured by real property located in Eagle, Idaho, payable in monthly installments of$8,752 including principal and interest at a fixed rate of 6% per annum. Note matures in June of2017.

A summary of notes payable follows:

The Diocese maintains a deposit and loan fund on behalf of the parishes and schools across theDiocese. This fund accumulates excess deposits such as those being accumulated under capitalcampaigns for parishes and schools and invests them. It pays the equivalent of a five year CD rateon those deposits. As of June 30, 2013 and 2012 the fund paid an interest rate on deposits of 1.14%and 1.60%, respectively. The parishes and schools can add and withdraw funds from this pool ondemand. The Diocese also administers the lending of money from this fund to parishes and schoolsthat need money to build new physical plant, or repair and renovate existing plant. These loansrange from 3 years to 20 years in length. Loan rates charged to borrowers range from 0% to 8.5%.Loans are set at simple interest rates and incur interest charges until paid by the parish or school.

The Diocese renewed its revolving line of credit agreement with a bank March 30, 2013. The linehas a $10,000,000 limit and is collateralized by investments in marketable securities held at thesame bank, including investments held at the Idaho Catholic Foundation for the Diocese and otherorganizations. Monthly interest payments are required, and the principal balance is due September30, 2014. There are certain covenants established with the line of credit and management statesthat they are in compliance with all covenants except for the requirement to provide annual auditedfinancial statements within 180 days of year ended June 30, 2013, for which an extended due date isbeing allowed by the bank. Funds borrowed are subject to a variable rate equal to the lesser of2.250% or 1.050% plus the one-month adjusted LIBOR rate. The balance due totaled $3,000,000and $1,000,000 as of June 30, 2013 and 2012, respectively.

The Diocese makes loans and has accounts receivable due from parishes, schools and otherreligious organizations as part of its normal operations. The allowance for doubtful accounts relatedto outstanding loans totaled $1,300,000 and $300,000 as of June 30, 2013 and 2012, respectively.

NOTES PAYABLE

24


NOTE N -

Years ending June 30: Amount

2014 153,976$ 2015 163,001 2016 172,557

174,946 302,532

Thereafter 2,206,819

3,173,831$

NOTE O - RESTRICTED NET ASSETS

Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes:

2013 2012

Pastoral (552,094)$ (482,105)$ Education 33,633 30,647 Social Services 1,513,004 1,672,484 Idaho Catholic Appeal (2012 Campaign) - 1,613,972 Idaho Catholic Appeal (2013 Campaign) 1,727,482 -

2,722,025$ 2,834,998$

Net Assets Released From Restrictions

2013 2012

Pastoral 406,024$ 541,487$ Education 113,160 230,329 Social Services 578,725 574,809 Idaho Catholic Appeal (2011 Campaign) - 2,550,391 Idaho Catholic Appeal (2012 Campaign) 2,387,391 -

3,485,300$ 3,897,016$

Permanently Restricted Net Assets

2013 2012

Endowment Funds 1,642,442$ 1,407,442$

Permanently restricted net assets, where the investments are to be held in perpetuity and theincome used for specified purposes, are comprised of the following:

2017

Net assets were released from restrictions by incurring expenses satisfying the restrictedpurposes or by the occurrence of their specified events or expiration of time restrictions asfollows:


June 30, 2013 and 2012

NOTES PAYABLE (Continued)

2018

Maturities of notes payable subsequent to June 30, 2013 are as follows:

25


NOTE P -

NOTE Q - LEASES IN FINANCIAL STATEMENTS OF LESSORS

Amount

299,368$ 135,717 88,632 54,368 31,808

Thereafter 69,645

679,538$

NOTE R - RELATED PARTY TRANSACTIONS


June 30, 2013 and 2012

Approximately $6,839,232 of investments and one third of the beneficial interest in perpetual trustpresented in the Statements of Financial Position and in the related disclosures and supplementaryinformation are held at the Idaho Catholic Foundation. The investment assets held at the IdahoCatholic Foundation for the Diocese as well as $8,190,120 held for other charitable organizationsare pledged as collateral for the line of credit described in Note M. The board of directors for theIdaho Catholic Foundation is not elected by the Diocese.

Idaho Catholic Foundation

INSURANCE ACTIVITIES

The Diocese manages insurance programs on behalf of parishes, schools, and other entities withinthe Diocese through a combination of self-insurance, purchase of excess insurance coverage abovethe self-insured levels, and liability insurance. Participants are billed premiums to defray the cost ofthe program. Incurred but not reported claims are accrued and at June 30, 2013 and 2012 totaled$210,000 and $412,700, respectively.

At June 30, 2013 and 2012, the Diocese recognized revenue from Diocesan parishes, schools, andother related organizations in the amount of $5,528,414 and $5,309,122, respectively forassessments, insurance, and interest. The Diocese incurred interest expense related to the parishdeposit and loan program in the amount of $298,774 and $488,845 for the years ended June 30,2013 and 2012, respectively.

The Diocese recorded an accounts payable to Catholic Charities of $583,362 and $354,793 at June30, 2013 and 2012, respectively. The amounts represent the collections from the Idaho CatholicAppeal specifically designated for Catholic Charities. An accounts receivable from CatholicCharities to the Diocese totaled $39,565 and $23,142 as of June 30, 2013 and 2012, respectively.

The Diocese leases portions of its office building and other property to various organizations in theTreasure Valley.

The Diocese performs various administrative services including deposits and loans, insurance andpayroll processing for related entities. All significant activities are reflected in these financialstatements.

Council members of the Diocese are comprised of owners and employees of businesses located inthe Treasure Valley. In the course of operations, from time to time, the Diocese has transactionswith these businesses.

2014

Summary of contracted rent payments to be received as of June 30:

Years ending June 30:

2018

20162017

2015

26


NOTE S - CONCENTRATION OF CREDIT RISK

NOTE T - COMPARATIVE FINANCIAL INFORMATION

NOTE U - RECLASSIFICATIONS

NOTE V - CAPITAL CAMPAIGN

During the year ending June 30, 2013, the Diocese paid professional fundraising expenses of$700,000 and other campaign expenses of approximately $204,545. As mentioned in Note D, theDiocese's annual Idaho Catholic Appeal was incorporated as part of the capital campaign for theyear ended June 30, 2013. Capital campaign collections of $2,820,962 were distributed to theDiocese during the fiscal ending June 30, 2014 for the Idaho Catholic Appeal and to reimburse theDiocese for $500,000 of campaign expenses.

It is the intention of the Idaho Catholic Foundation to invest $6,000,000 of campaign donations toendowment funds that will generate future income to benefit Diocese programs for the care ofpriests, ongoing formation, Catholic education and faith, and charitable works. The Diocese willreceive annual support from the endowment funds as approved by the Idaho Catholic Foundation.

Certain accounts in the prior-year financial statements have been reclassified for comparativepurposes to conform with the presentation in the current-year financial statements.

The Diocese began a capital campaign in July 2012 on behalf of the Idaho Catholic Foundation inwhich it hopes to raise $15,000,000 over a four year period. Capital campaign funds have beendesignated to be distributed and invested in funds to benefit the Diocese and its programs. Allassets contributed to the capital campaign are considered property of the Idaho Catholic Foundation.The Diocese has no authority and no ownership of the funds; therefore, no assets from the capitalcampaign other than those approved for distribution, have been included in the financial statementsof the Diocese. Annual support from the capital campaign distributed to the Diocese is recorded ascontribution revenue when it is received or authorized by the Idaho Catholic Foundation fordistribution.


June 30, 2013 and 2012

The financial statements include certain prior-year summarized comparative information in total butnot by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should beread in conjunction with the Diocese's financial statements for the year ended June 30, 2012, fromwhich the summarized information was derived.

The Diocese maintains cash accounts with local financial institutions. The balances are insured bythe Federal Deposit Insurance Corporation (FDIC) up to $250,000 for the year ended June 30, 2013.The FDIC offered unlimited insurance coverage for noninterest-bearing accounts for the year endedJune 30, 2012. There were no uninsured balances for the years ended June 30, 2013 and June 30,2012.

Financial instruments that potentially subject the Diocese to a concentration of credit risk consistprincipally of cash and cash equivalents, accounts receivable and loans receivable. The activity ofthe Diocese is primarily with parishes, schools, and other entities within the Diocese. The credit riskfor these receivables arises because the Diocese is dependent on the financial support of theparishioners to their local parish and the parishes' subsequent support of the Diocese.

27


NOTE W - SUBSEQUENT EVENTS

Subsequent events have been evaluated through May 23, 2014 which coincides with the date ofissuance of these financial statements. As of the report date, no events of significance have beenbrought to the attention of management that would require disclosure.


June 30, 2013 and 2012

28

Central Administrative Office of the Roman Catholic Diocese of BoiseBoise, Idaho

Travis Jeffries, P.A.

Boise, Idaho

INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION

We have audited the financial statements of the Central Administrative Office of the Roman CatholicDiocese of Boise as of and for the year ended June 30, 2013, and have issued our report thereon dated May23, 2014, which contained an unmodified opinion on those financial statements. Our audit was performedfor the purpose of forming an opinion on the financial statements as a whole. The supplementaryinformation is presented for the purposes of additional analysis and is not a required part of the financialstatements. Such information is the responsibility of management and was derived from and relates directlyto the underlying accounting and other records used to prepare the financial statements. The informationhas been subjected to the auditing procedures applied in the audit of the financial statements and certainadditional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the financial statements or to the financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the information is fairly stated in all material respects in relation tothe financial statements as a whole.

May 23, 2014


2012

Health & Property & Idaho NazarethDeposit Welfare Liability Catholic Retreat Student Board Summarized

Operating & Loan Insurance Insurance Register Center Centers Custodial Plant Designated Total Information

ASSETSCash (259,085)$ -$ 87,806$ -$ 166,314$ 16,283$ (4,165)$ -$ -$ -$ 7,153$ 727,897$ Certificates of deposit - - - - - - - - - - - 145,711 Accounts and pledges receivable 3,578,353 (8,972) 217,704 700,959 31,768 15,320 - 97,129 - - 4,632,261 2,146,161 Deposits and prepaid expenses 93,211 - - 68,378 4,534 - 689 - - - 166,812 136,614Interfund receivable (payable) 6,197,456 6,639,043 (569,584) (352,055) 14,350 (999,931) (712,475) 334,616 (12,719,001) - (2,167,581) (1,919,938)Marketable securities 2,482,733 6,480,307 22,482 177,846 - - 373,290 - - 3,757,798 13,294,456 11,678,806 Beneficial interest in perpetual trust - - - - - - - - - - - (2,528) Loans to parishes and schools - 9,063,798 - - - - - - - - 9,063,798 11,421,013 Loans and notes receivable 611,338 - - - - - - - - - 611,338 600,491 Property, plant and equipment - 36,584 - - 11,860 2,671,622 - - 14,198,004 - 16,918,070 17,230,602Accumulated depreciation - - - - (8,642) (1,294,809) - - (3,876,716) - (5,180,167) (4,733,617)

Total Assets 12,704,006$ 22,210,760$ (241,592)$ 595,128$ 220,184$ 408,485$ (342,661)$ 431,745$ (2,397,713)$ 3,757,798$ 37,346,140$ 37,431,212$

COMBINING STATEMENTS OF FINANCIAL POSITION - UNRESTRICTED NET ASSETS


ASSETS

2013

See independent auditor's report on supplementary information.30


2012

Health & Property & Idaho Nazareth

Deposit Welfare Liability Catholic Retreat Student Board Summarized


LIABILITIESAccounts payable 73,241$ -$ 373$ 1,425$ 1,717$ 9,691$ 19,433$ 20,057$ -$ -$ 125,937$ 140,732$ Accrued liabilities 286,716 4,213 210,000 - 6,573 13,525 1,550 444,509 - 182,061 1,149,147 1,477,546Line of credit 3,000,000 - - - - - - - - - 3,000,000 1,000,000Parish cash management 3,898,928 - - - - - - - - - 3,898,928 3,335,001Parish savings deposit - 22,484,903 - - - - - - - - 22,484,903 25,113,931Lay pension trust 279,588 - - - - - - - - - 279,588 496,291Liability for pension

benefits - lay 597,960 - - - - - - - - - 597,960 678,991Liability for pension

benefits - priest 739,253 - - - - - - - - - 739,253 789,876Notes payable 3,173,831 - - - - - - - - - 3,173,831 3,318,303Deferred revenue 115 - - - - - - - - - 115 2,625

Total Liabilities 12,049,632 22,489,116 210,373 1,425 8,290 23,216 20,983 464,566 - 182,061 35,449,662 36,353,296

NET ASSETS 654,374 (278,356) (451,965) 593,703 211,894 385,269 (363,644) (32,821) (2,397,713) 3,575,737 1,896,478 1,077,916

Total Liabilities andNet Assets 12,704,006$ 22,210,760$ (241,592)$ 595,128$ 220,184$ 408,485$ (342,661)$ 431,745$ (2,397,713)$ 3,757,798$ 37,346,140$ 37,431,212$

COMBINING STATEMENTS OF FINANCIAL POSITION - UNRESTRICTED NET ASSETS (Continued)



2013



2012


Operating & Loan Insurance Insurance Register Center Centers Custodial Plant Designated Total InformationREVENUE AND SUPPORT

Contributions 90,359$ -$ -$ -$ 20$ 39,614$ 88,978$ -$ -$ 101,241$ 320,212$ 637,068$ Program services 694,232 - - - 256,253 216,106 1,290 - - - 1,167,881 1,232,942 Assessment revenue 661,088 - - - - - - - - - 661,088 637,180 Insurance program - - 3,638,323 934,350 - - - - - - 4,572,673 4,421,788 Grant revenue 252,987 - - - - - 58,121 - - - 311,108 415,297 Deposit and loan interest 26,266 268,387 - - - - - - - - 294,653 250,153 Rental income 554,442 - - - - 17,718 46,949 - - - 619,109 651,199 Gain on sale of property - 10,642 - - - - - - 522,001 532,643 3,713 Investment income 397,596 737,944 2,449 19,249 1,917 202 4,426 - - 470,597 1,634,380 (97,316) ICF campaign reimbursements 500,000 - - - - - - - - - 500,000 - Miscellaneous 7,905 - - - - - 5,802 - - - 13,707 7,900 Net assets released from

restrictions satisfied bypayments 3,485,300 - - - - - - - - - 3,485,300 3,897,016

Total Revenue 6,670,175 1,016,973 3,640,772 953,599 258,190 273,640 205,566 - 522,001 571,838 14,112,754 12,056,940

EXPENSES

Salaries 1,786,777 - - - 127,826 121,362 117,457 - - - 2,153,422 1,968,344 Auto 59,200 - - - 286 - - - - - 59,486 33,866 Advertising 4,864 - - - - 354 - - - - 5,218 7,403 Bank and investment 135,052 65,890 - 1,681 - - 3 - - 31,282 233,908 214,497 Computer 247,755 - - - 402 185 3,530 - - - 251,872 310,758 Contributions 386,653 - - - - - - - - - 386,653 420,551 Dues and subscriptions 58,531 - - - 3,130 390 396 - - - 62,447 72,667 Depreciation 553 - - - 1,688 51,896 - - 437,179 - 491,316 498,269 Employee benefits 349,340 - - - 23,399 25,829 32,307 - - - 430,875 393,553 Event 235,314 - - - 1,002 250 19,033 - - - 255,599 459,705 Supplies 18,103 - - - - 42,474 3,212 - - - 63,789 48,752 Miscellaneous 18,806 - - - 1,067 2,032 3,844 - - - 25,749 84,228 Payroll taxes 119,643 - - - 8,913 8,153 8,512 - - - 145,221 132,604 Postage 31,013 - - - 58,666 212 169 - - - 90,060 84,432 Office 23,958 - - - 461 1,063 1,053 - - - 26,535 22,640 Rental 94,476 - - - - 68 - - - - 94,544 79,172 Repairs and maintenance 113,981 - - - - 13,719 24,866 - - - 152,566 130,391

COMBINING STATEMENTS OF ACTIVITIES - UNRESTRICTED NET ASSETS


2013



2012



Interest 191,855$ 298,774$ -$ -$ -$ -$ -$ -$ -$ -$ 490,629$ 694,604$ Bad debt 33,992 1,000,000 - - - - - - - - 1,033,992 591 Stipends 69,505 - - - 500 2,170 3,080 - - - 75,255 75,190 Telephone 18,753 - - - 250 3,385 2,148 - - - 24,536 21,120 Training 25,645 - - - - - 975 - - - 26,620 23,717 Travel 157,581 - - - 1,443 844 2,534 - - - 162,402 124,871 Meetings 33,129 - - - 200 - - - - - 33,329 40,444 Printing and copies 117,122 - - - 32,678 - 955 - - - 150,755 47,327 Professional services 967,756 54 63,826 - 12,257 218 283 - - - 1,044,394 236,074 Insurance 24,368 - 2,883,900 848,577 - 4,811 - - - - 3,761,656 4,369,439 Appropriations 154,680 - - - - - - - - 182,061 336,741 311,627 Disbursements 944,971 - - - - - - - - - 944,971 1,323,916 Meals and entertainment 59,994 - - - 67 - - - - - 60,061 16,412 Utilities 105,944 - - - - 32,218 31,632 - - - 169,794 159,299 Property taxes 137,098 - - - - - 13,679 - - - 150,777 134,990 Workers compensation 24,993 - - - 2,056 1,795 1,830 - - - 30,674 27,886 FASB ASC 715 Expense (131,654) - - - - - - - - - (131,654) 298,025

Total Expenses 6,619,751 1,364,718 2,947,726 850,258 276,291 313,428 271,498 - 437,179 213,343 13,294,192 12,867,364

Increase (Decrease)in Net Assets 50,424 (347,745) 693,046 103,341 (18,101) (39,788) (65,932) - 84,822 358,495 818,562 (810,424)

NET ASSETS, Beginning of Year 603,950 69,389 (1,145,011) 490,362 229,995 425,057 (297,712) (32,821) (2,482,535) 3,217,242 1,077,916 1,888,340

NET ASSETS, End of Year 654,374$ (278,356)$ (451,965)$ 593,703$ 211,894$ 385,269$ (363,644)$ (32,821)$ (2,397,713)$ 3,575,737$ 1,896,478$ 1,077,916$

COMBINING STATEMENTS OF ACTIVITIES - UNRESTRICTED NET ASSETS (Continued)


2013



Koelsch Magic DiocesanCharitable Retirement Extension Valley High Bishop Development

Charity Seminary Clergy Unitrust Housing Grant School Discretionary Program

ASSETSCash and cash equivalents -$ 14,160$ -$ -$ 500$ -$ 1,818$ -$ -$ Accounts and pledges receivable - 450 10,081 - 950 - - - 39,348 Deposits and prepaid expenses 500 - - - 200 - - - - Interfund receivable (payable) 477,879 681,948 (1,535,326) - 859,317 - - (169,851) 1,677,039Marketable securities 108,672 622,692 54,985 132,734 - - - 15,685 - Beneficial interest in perpetual trust - - 11,095 - - - - - 11,095 Property, plant and equipment - 88,655 - - - - - - - Accumulated depreciation - (3,819) - - - - - - -

Total Assets 587,051$ 1,404,086$ (1,459,165)$ 132,734$ 860,967$ -$ 1,818$ (154,166)$ 1,727,482$

LIABILITIESDeferred income -$ -$ -$ -$ -$ -$ -$ -$ -$ Accounts payable 806 1,265 8,431 1,259 - Accrued liabilities 583,362 200 - 132,734 2,691 - - - -

Total Liabilities 584,168 1,465 8,431 132,734 3,950 - - - -

NET ASSETS 2,883 1,402,621 (1,467,596) - 857,017 - 1,818 (154,166) 1,727,482

Total Liabilities and Net Assets 587,051$ 1,404,086$ (1,459,165)$ 132,734$ 860,967$ -$ 1,818$ (154,166)$ 1,727,482$


COMBINING STATEMENTS OF FINANCIAL POSITION - TEMPORARILY RESTRICTED NET ASSETS


ASSETS

2013



2012

Catholic Idaho Catholic Unitrust SummarizedIdaho Foundation Education Fund Total Information

ASSETSCash and cash equivalents -$ -$ -$ -$ 16,478$ 16,206$ Accounts and pledges receivable - - - - 50,829 296,215 Deposits and prepaid expenses - - - - 700 877 Interfund receivable (payable) 178,816 - 1,792 (4,033) 2,167,581 1,919,938 Marketable securities 71,755 - 30,023 62,518 1,099,064 997,491 Beneficial interest in perpetual trust - 11,095 - - 33,285 - Property, plant and equipment - - - - 88,655 88,655 Accumulated depreciation - - - - (3,819) (3,265)

Total Assets 250,571$ 11,095$ 31,815$ 58,485$ 3,452,773$ 3,316,117$

LIABILITIESDeferred revenue -$ -$ -$ -$ -$ -$ Accounts payable - - - - 11,761 - Accrued liabilities - - - - 718,987 481,119

Total Liabilities - - - - 730,748 481,119

NET ASSETS 250,571 11,095 31,815 58,485 2,722,025 2,834,998

Total Liabilities and Net Assets 250,571$ 11,095$ 31,815$ 58,485$ 3,452,773$ 3,316,117$

2013

ASSETS


COMBINING STATEMENTS OF FINANCIAL POSITION - TEMPORARILY RESTRICTED NET ASSETS

June 30, 2013 and June 30, 2012 Summarized Information (continued)

35


Koelsch Magic DiocesanCharitable Retirement Extension Valley High Bishop Development

Charity Seminary Clergy Unitrust Housing Grant School Discretionary Plan

REVENUE AND SUPPORTContributions 112,932$ 142,372$ 116,773$ -$ 15,593$ -$ -$ 6,803$ 2,487,213$ Program services - - 113,500 - - - - - - Grant revenue 23,522 25,000 - - - 112,875 - - - Rental income - 8,715 - - 55,000 - - - - Investment income 11,765 67,574 20,451 9,057 - - 21 1,698 13,689 Net assets released from

(199,270) (367,775) (332,849) (9,057) (63,090) (112,875) - (10,105) (2,387,391)

Total Revenue and Support (51,051) (124,114) (82,125) - 7,503 - 21 (1,604) 113,511

NET ASSETS, Beginning of Year 53,934 1,526,735 (1,385,471) - 849,514 - 1,797 (152,562) 1,613,971

NET ASSETS, End of Year 2,883$ 1,402,621$ (1,467,596)$ -$ 857,017$ - 1,818$ (154,166)$ 1,727,482$

COMBINING STATEMENTS OF ACTIVITIES - TEMPORARILY RESTRICTED NET ASSETS


2013

payments restrictions satisfied by



2012

Catholic Idaho Catholic Unitrust SummarizedIdaho Foundation Education Fund Total Information

REVENUE AND SUPPORTContributions -$ -$ -$ -$ 2,881,686$ 3,091,119$ Program services - - - - 113,500 119,500 Grant revenue - - - - 161,397 268,172 Rental income - - - - 63,715 56,690 Investment income 7,768 11,095 3,250 5,661 152,029 26,210 Net assets released from

(681) (894) (285) (1,028) (3,485,300) (3,897,016)

Total Revenue and Support 7,087 10,201 2,965 4,633 (112,973) (335,325)

NET ASSETS, Beginning of Year 243,484 894 28,850 53,852 2,834,998 3,170,323

NET ASSETS, End of Year 250,571$ 11,095$ 31,815$ 58,485$ 2,722,025$ 2,834,998$

2013

payments restrictions satisfied by

COMBINING STATEMENTS OF ACTIVITIES - TEMPORARILY RESTRICTED NET ASSETS

For the Year Ended June 30, 2013 and Summarized Information for the Year Ended June 30, 2012 (continued)

37


2012

Chausee Thomas and

Heinz St. Joseph's Family Memorial James & Olive Seminarian John L. Joan Chapman Summarized

Charitable Children Home Fund Davis Fund scholarship fund Muegerl Trust Cooney Fund Total Information

ASSETSMarketable securities 94,148$ 151,405$ 250,000$ 238,361$ 100,000$ -$ -$ 833,914$ 833,914$ Property, plant and equipment - - - - - - 235,000 235,000 - Beneficial interest in perpetual - - - - - - - - - trust - - - - - 573,528 - 573,528 573,528

Total Assets 94,148$ 151,405$ 250,000$ 238,361$ 100,000$ 573,528$ 235,000$ 1,642,442$ 1,407,442$

NET ASSETS 94,148$ 151,405$ 250,000$ 238,361$ 100,000$ 573,528$ 235,000$ 1,642,442$ 1,407,442$

Total Liabilities and Net Assets 94,148$ 151,405$ 250,000$ 238,361$ 100,000$ 573,528$ 235,000$ 1,642,442$ 1,407,442$


ASSETS

2013

COMBINING STATEMENTS OF FINANCIAL POSITION - PERMANENTLY RESTRICTED NET ASSETS


38


2012

Chausee Thomas and

Heinz St. Joseph's Family Memorial James & Olive Seminarian John L. Joan Chapman Summarized

Charitable Children Home Fund Davis Fund scholarship fund Muegerl Trust Cooney Fund Total Information

REVENUE AND SUPPORTContributions -$ -$ -$ -$ -$ -$ 235,000$ 235,000$ -$

Total Revenue and Support - - - - - - 235,000 235,000 -

NET ASSETS, Beginning ofYear 94,148 151,405 250,000 238,361 100,000 573,528 - 1,407,442 1,407,442

NET ASSETS, End of Year 94,148$ 151,405$ 250,000$ 238,361$ 100,000$ 573,528$ 235,000$ 1,642,442$ 1,407,442$

2013

COMBINING STATEMENTS OF ACTIVITIES - PERMANENTLY RESTRICTED NET ASSETS


39

Documents

CENTRAL ADMINISTRATIVE OFFICE OF THE ROMAN … Statement June 13-12 final.pdfTravis Jeffries, P.A. Boise, Idaho 590 W. WASHINGTON BOISE, ID 83702-5953 PHONE (208) 345-5383 FAX (208)